Bank's Net Falls; Attacks Cited

Published: October 19, 2001

Bank of New York said yesterday that its third-quarter profit fell 33 percent, partly because the Sept. 11 attacks knocked out some of the its computer systems and forced it to shut down branches.

The bank, based in New York, had to evacuate about 8,300 workers after two hijacked planes destroyed the World Trade Center on Sept. 11. The bank said it was hurt by the cost of contingency plans and restoring its settlement and automated teller machine networks.

It earned $243 million, or 33 cents a share, in the third quarter, including the impact of the attacks, compared with $363 million, or 49 cents a share, a year earlier. The attacks pushed third-quarter profit down $140 million, more than its original estimate of $125 million.

Excluding a one-time charge of 19 cents a share because of the attack, Bank of New York earned $383 million, or 52 cents a share, in the quarter. Analysts had expected 51 cents a share, according to Thomson Financial/First Call.